Press Clippings: May 2009

Major Industry items you might have missed

Friday, May 29, 2009

Microsoft revamps search engine, dubbed “Bing”.

Source: Reuters.

Microsoft Corp is revamping its search engine to counter the dominance of Google Inc in the Web search and related advertising business.
The company, which has been testing the search engine internally under the name Kumo for several months, plans to introduce the new service, re-christened “Bing,” over the next few days, with a full launch next Wednesday. The service will be available at

Posted by Judith — 4:11 AM

Time Warner proceeding with AOL spinoff.

Source: TeleGeography.

Time Warner announced that its board has approved a plan for a complete legal and structural separation of its ISP subsidiary AOL, which will become a publicly listed standalone company.
Time Warner currently owns 95% of AOL, and Google holds the remaining 5%. As part of a prior arrangement, Time Warner expects to purchase Google’s 5% stake in the third quarter of 2009. Once the proposed spinoff is completed, Time Warner shareholders will own all of the outstanding interests in AOL.

Posted by Judith — 3:58 AM

Tiscali agrees debt restructuring.

Source: Telecompaper.

Tiscali has reached a framework agreement with its creditors on restructuring of the ISP’s debt payments. The Italian company agreed to use proceeds from the planned sale of its UK operations to pay off EUR200m. of its EUR500m. in senior debt, as well as EUR8m. of the EUR100m. owed the company’s minority shareholders.

Posted by Judith — 3:15 AM

ACCC approves Vodafone, H3G merger proposals.

Source: TeleGeography.

The Australian Competition and Consumer Commission has given the green light to the merger of mobile operators Vodafone Australia and Hutchison 3G Australia. The regulator said that it found no reason to believe that the tie-up would substantially lessen competition in the country’s wireless sector.

Posted by Judith — 2:38 AM

NextGenTel acquires Tele2 Norge broadband operations.

Source: TeleGeography.

Swedish telecoms group Tele2 has announced that it has divested its Norwegian fixed broadband operations, including its VoIP customer base, to NextGenTel. Pending approval from the regulatory authorities, NextGenTel is expected to pay approximately SEK120m. (US$15.52m.) in cash for the operations.

Posted by Judith — 2:05 AM

Thursday, May 28, 2009

France Telecom’s Egyptian plan blocked.

Source: BWCS.

France Telecom has had its takeover bid for the Egyptian mobile operator Mobinil rejected by the Egyptian stock market authority. The French operator has been trying to acquire all of the company.

Posted by Judith — 4:48 AM

Nortel puts LG-Nortel stake up for sale.

Source: Telecompaper.

Nortel is putting its stake in the enterprise equipment venture LG-Nortel up for sale. Nortel holds 50% plus one of the shares in the joint venture with LG Electronics.

Posted by Judith — 3:18 AM

Wednesday, May 27, 2009

Digital Sky invests US$200m. in Facebook

Source: Telecompaper.

Russian internet investment group Digital Sky Technologies has made a US$200m. investment in Facebook in exchange for preferred stock in the online social networking company. This represents a 1.96% equity stake in Facebook at a US$10bn. valuation for the company.

Posted by Judith — 4:06 AM

IBM earmarks US$3bn. for Europe and Asia stimulus.

Source: Reuters.

IBM has earmarked US$3bn. to finance so-called smart infrastructure projects in Europe and Asia likely to receive government stimulus support.
The move follows a similar announcement of US$2bn. the computer consulting and technology company is making available in the United States as it seeks to win business for which government funds may not immediately be forthcoming.

Posted by Judith — 3:01 AM

EUR66m. fine for Belgacom mobile unit for abuse of dominant position.

Source: TeleGeography.

The Belgian competition authority has fined incumbent Belgacom EUR66.3m. (US$92.6m.) relating to its mobile phone unit, Proximus. The fine has been levied in response to what the watchdog called Belgacom’s abuse of its dominant position, and is the largest penalty ever handed down by the BCC.

Posted by Judith — 2:02 AM

Tuesday, May 26, 2009

Asia-Pacific gateway cable network promises 4 Tbps.

Source: Converge.

China Telecom, China Unicom, Chunghwa Telecom, NTT Communications, KT, PLDT, Telekom Malaysia and VNPT have signed a memorandum of understanding to co-develop the Asia-Pacific Gateway (APG) as an international undersea cable system within the Asia-Pacific region. The APG will span about 8,000km and have a minimum design capacity of four terabits per second. It will connect Japan, Korea, China Mainland, Taiwan, the Philippines, Hong Kong, Vietnam, Singapore and Thailand.

Posted by Judith — 4:38 AM

United Internet acquires Freenet’s DSL ops for EUR123m.

Source: Telecompaper.

United Internet’s subsidiary 1&1 Internet and German telecom services provider Freenet have signed an agreement for the acquisition of Freenet’s DSL business and a preferred distribution partnership for DSL products. The agreement will see United Internet’s total DSL customer base grow to more than 3.5m., making it the second largest DSL provider in Germany behind Deutsche Telekom. The agreed purchase price is EUR123m., payable as EUR70m. in cash and 4.58m. United Internet shares.

Posted by Judith — 2:33 AM

Three GSM-1800 bidders.

Source: TeleGeography.

Hong Kong’s telecoms regulator OFTA has received three bids for a block of 1800MHz band GSM wireless spectrum from three existing mobile operators in the Special Administrative Region, namely China Mobile Hong Kong (which operates as Peoples), Hong Kong Telecommunications (HKT, part of PCCW, which offers services as PCCW Mobile) and SmarTone (operating under the SmarTone-Vodafone brand).

Posted by Judith — 2:04 AM

Monday, May 25, 2009

TaTa, Yahoo! India partner for co-branded homepage.

Source: Telecompaper.

Indian operator Tata Teleservices has entered into a contract with Yahoo! India. As a result, a co-branded Yahoo! India homepage will serve as the default across all Tata Indicom internet access devices.

Posted by Judith — 3:50 AM

NTT Com to acquire Pacific Crossing.

Source: Telecompaper.

Japanese operator NTT Communications has agreed to buy Pacific Crossing, operator of the PC-1 trans-Pacific fibre-optic cable. The acquisition of PCL will enable NTT Com to strengthen its trans-Pacific cable capacity and reliability and thereby meet customer demand for data communication between Japan, the rest of Asia and the United States.

Posted by Judith — 3:35 AM

Bharti Airtel, MTN restart talks on merger.

Source: Telecompaper.

India’s largest mobile operator Bharti Airtel has restarted talks to acquire a stake in Africa and Middle East operator MTN. The two had discussed a merger last year but talks broke down over control of the combined operation. Bharti Airtel confirmed in a statement that the two are now in talks for the Indian company to acquire a 49% stake in South Africa-based MTN. In exchange, MTN and its shareholders would take a 36% stake in Bharti Airtel.

Posted by Judith — 3:05 AM

Friday, May 22, 2009

Further state approval for EMBARQ/CenturyTel merger.

Source: TeleGeography.

State regulators in California, Oregon and Virginia have approved the proposed sale of EMBARQ to CenturyTel. The wireline and broadband providers own combined operations across 33 states and have now received approval for the merger from 31 of the corresponding state regulators.

Posted by Judith — 4:11 AM

NSN initiates court action over disqualification from BSNL tender.

Source: TeleGeography.

NSN has filed a legal challenge against its disqualification on technical grounds as a bidder for state-owned BSNL’s recent 94m. GSM line tender. The equipment vendor has filed the case in the Delhi High Court, and it is rumoured that another company may be considering similar action; other vendors disqualified included ZTE Telecom, Nortel and Alcatel-Lucent. The disqualified companies are all understood to have objected to the fact that BSNL rejected bids without providing a reason or clarification, and NSN has suggested that the tender favoured certain vendors.

Posted by Judith — 3:53 AM

Huawei takes third spot in mobile telco gear market.

Source: Reuters.

China’s Huawei Technologies took the No. 3 position in the ailing mobile network gear market in the first quarter, doubling its market share from a year ago and bypassing Alcatel-Lucent.
Sweden’s Ericsson expanded its lead as its closest rival Nokia Siemens Networks lost market share.

Posted by Judith — 2:44 AM

Thursday, May 21, 2009

Ofcom to look into mobile charges.

Source: BBC.

UK telecoms watchdog Ofcom is to begin reviewing charges made by mobile phone operators. It is to probe mobile termination rates.
In 2007 Ofcom set a programme for these rates to fall by about 25% by 2011. Its latest consultation will examine the charges from 2011 to 2015.

Posted by Judith — 2:50 AM

BT, 3 UK start ‘Terminate the Rate’ campaign.

Source: Telecompaper.

UK fixed-line operator BT and mobile operator 3 UK have partnered to launch the ‘Terminate the Rate’ campaign, aimed at a sharp reduction in mobile temrination rates. The operators claim that termination rates account for around 4.7p. of every call to a mobile line, and they want to see this drop to around 1p.

Posted by Judith — 2:02 AM

VZ Business launches cloud-based network management, monitoring and reporting.

Source: Converge.

Verizon Business has introduced several new “cloud-based” capabilities for global enterprises.
The new capabilities are:
Asset Assurance, an enhanced Internet Security Assessment, and new managed security capabilities for Verizon Secure Gateway-Firewall.

Posted by Judith — 1:51 AM

Wednesday, May 20, 2009

HP, Microsoft work on unified communications & collaboration.

Source: Telecompaper.

HP and Microsoft have announced a four-year global initiative to deliver an end-to-end unified communications and collaboration product. As part of their Frontline Partnership, the two companies expect to invest up to an additional US$180m. in product development, professional services, as well as joint sales and marketing.

Posted by Judith — 3:15 AM

Toshiba to end cellphone output in Japan.

Source: Reuters.

Japanese electronics group Toshiba Corp is reported to be planning to end production of mobile phones in Japan around October to cut costs as demand slumps.
Toshiba, Japan’s No. 6 cellphone maker with a 7% market share, will continue to make smartphones in China and outsource production of its other phones.

Posted by Judith — 2:28 AM

Orascom Telecom files court appeal over Mobinil deal.

Source: Telecompaper.

Orascom Telecom (OT) has filed a court appeal requesting that a sale of its shares in mobile operator Mobinil be rescinded because the buyer, France Telecom, had not met the conditions for the deal.

Posted by Judith — 2:03 AM

Vodafone confirms HanseNet bid.

Source: TeleGeography.

Vodafone has confirmed that it has made a non-binding offer for Telecom Italia’s German broadband unit, HanseNet. UK-based Vodafone already owns German fixed line business Arcor, which is the country’s second largest broadband provider by subscribers behind the incumbent telco Deutsche Telekom, with 3.1m. broadband customers.
Telefonica O2 Germany has already placed a bid for HanseNet.

Posted by Judith — 2:00 AM

T-Systems awarded Argentine telecoms licence.

Source: TeleGeography.

Deutsche Telekom’s IT services division, T-Systems, has been granted a licence to provide telecoms services in Argentina. The permit allows T-Systems to provide to the public all telecommunications services - fixed or mobile, wireline or wireless, national or international, with or without its own infrastructure.

Posted by Judith — 1:50 AM

Tuesday, May 19, 2009

China Mobile to list at home.

Source: BWCS.

China Mobile looks set to list in its home market as early as possible. The company, which is already listed on the Hong Kong and New York stock exchanges, is being encouraged to offer shares in its home market by the Chinese government. Beijing is determined to make shares in major domestic businesses available to Chinese investors.

Posted by Judith — 4:08 AM

Monday, May 18, 2009

SA court clears Vodacom listing.

Source: Telecompaper.

A South African court has thrown out a bid by trade union federation Cosatu to block the planned stock market listing of mobile operator Vodacom. Telkom is selling part of its Vodacom stake to Vodafone and spinning off the remainder to its shareholders, allowing Vodacom to list on the stock market.

Posted by Judith — 3:53 AM

AT&T to offer cloud-based storage as a service.

Source: Reuters.

AT&T plans to offer Web-based data storage services for corporations using “cloud computing” technologies developed by data storage equipment maker EMC Corp.
The telecommunications giant will join IBM, Amazon, Symantec, Iron Mountain and others in offering storage as a service product, which allow companies to use the Internet to transfer information to remote storage facilities.

Posted by Judith — 3:29 AM

Friday, May 15, 2009

MTNL launches Mumbai 3G network, reveals network deal with Alcatel-Lucent.

Source: TeleGeography.

State-owned Indian MTNL has announced a deal with French-US hardware vendor Alcatel-Lucent that will see that latter provide its mobile next generation solution. The deployment is a part of a multi-year agreement under which Alcatel-Lucent is providing an end-to-end GSM/EDGE solution to MTNL.

Posted by Judith — 4:02 AM

EC picks Inmarsat, Solaris for mobile satellite services.

Source: Telecompaper.

The EC has selected Inmarsat and Solaris Mobile to provide mobile satellite services across Europe. The services, such as high-speed internet access, mobile television and radio or emergency communications, will be provided over a specifically reserved spectrum.

Posted by Judith — 3:15 AM

Thursday, May 14, 2009

Motorola signs frame agreement with China Mobile.

Source: TeleGeography.

Motorola has announced that it has signed a one-year frame agreement with China Mobile Communications Corporation to provide wireless equipment and services. The frame agreement’s projected shipment and services value is estimated to be US$310. Under the deal Motorola will supply GSM/GPRS/EDGE infrastructure and related services in various markets already served by its radio infrastructure equipment.

Posted by Judith — 9:10 AM

BT to shed a further 15,000 jobs.

Source: BBC.

BT has said it will cut about 15,000 jobs this year, mostly in the UK, and has reported an annual loss of GBP134m.
The firm also said it had cut 15,000 jobs in the past year, which was 5,000 more than expected.

Posted by Judith — 4:02 AM

Verizon sells wireline assets for US$8.6bn.

Source: InformationWeek.

Verizon is selling its wireline assets in 14 states to Frontier Communications for US$8.6bn.
The deal triples Frontier’s footprint and gives it 4.8m. new access lines, primarily in rural areas. The agreement means Verizon will spin off the assets into an entity that will merge with Frontier when the deal is completed, which is expected to be in 12 months.

Posted by Judith — 3:57 AM

Clearwire selects Cisco for 4G mobile Wimax network.

Source: Telecompaper.

Clearwire and Cisco will enhance and expand Clear 4G mobile Wimax services throughout the US. Clearwire has selected Cisco as its national core infrastructure provider, and Cisco has announced plans to build new mobile Wimax devices for the Clear 4G mobile Wimax service for the consumer, small office or home office and small and medium-sized business markets.

Posted by Judith — 3:55 AM

Vodafone drops European roaming charges.

Source: BWCS.

Vodafone UK appears to have stolen a march on its rivals by dropping roaming charges to 45 countries. Instead, customers travelling abroad will only pay their usual rates for calls and messages home. However, they will still be charged high rates for data services.

Posted by Judith — 2:25 AM

Wednesday, May 13, 2009

EU slaps a record fine on Intel.

Source: BBC.

Computer chipmaker Intel has been fined a record EUR1.06bn. (US$1.45bn; GBP948m.) by the European Commission for anti-competitive practices.
The Commission found that between 2002 and 2007, Intel had paid manufacturers and a retailer to favour its products.

Posted by Judith — 3:58 AM

UK may cap spectrum ownership for mobile telcos.

Source: Reuters.

Britain has unveiled plans to cap ownership of the digital radio spectrum among mobile phone companies, aiming to settle a long-running dispute and fulfill the government’s target of providing universal broadband.
The government is trying to give all five mobile operators a fair chance to further roll out broadband under its plans for a “Digital Britain” future.

Posted by Judith — 2:41 AM

eircom agrees restructuring deal.

Source: TeleGeography.

Irish former monopoly operator eircom has agreed a restructuring deal with union officials under which 1,200 jobs will go over the next two years, equivalent to 16% of its workforce. The deal is the first part of a major restructuring agreement for the operator in which it intends to realise annualised cost savings of EUR130m. by the financial year 2010/11.

Posted by Judith — 2:36 AM

Tuesday, May 12, 2009

Windstream to acquire D&E Communications.

Source: Telecompaper.

US fixed network operator Windstream has entered into a definitive agreement to acquire regional fixed network operator D&E Communications in a transaction valued at approximately US$330m.

Posted by Judith — 3:34 AM

Vodafone to open network for applications store.

Source: Reuters.

Vodafone, the world’s largest mobile operator by revenue, plans to launch a mobile online store to sell games, news and travel applications that its customers can buy on whatever model of phone they use.

Posted by Judith — 3:10 AM

Monday, May 11, 2009

NZ Comms to launch mobile service in August.

Source: TeleGeography.

New Zealand Communications (NZ Comms) will launch mobile services in August 2009. The company, which will become the country’s third mobile operator, is branding itself as ‘2degrees’ for the launch.

Posted by Judith — 5:43 AM

Telenor acquires Danish mobile operator BiBoB.

Source: TeleGeography.

Nordic telecoms group Telenor has acquired Danish discount mobile operator BiBoB for DKK93m. Telenor already has a foothold in the Danish telecoms market through its subsidiary Telenor Denmark, which includes Tele2 Denmark and mobile operator Sonofon, and low-price mobile operator CBB Mobil and broadband provider Cybercity.

Posted by Judith — 3:54 AM

AT&T works with Jasper Wireless on M2M mobile integration.

Source: Converge.

AT&T has entered into a multi-year, strategic agreement with Jasper Wireless, a start-up based in California, to connect and support a variety of emerging consumer electronic and business devices on AT&T’s nationwide wireless network.

Posted by Judith — 3:00 AM

Saturday, May 9, 2009

AT&T to buy some Alltel assets for US$2.35bn.

Source: Reuters.

AT&T has announced that it will buy the bulk of Alltel Wireless assets being divested by Verizon Communications for US$2.35bn., and will sell some Centennial Communications Corp assets to Verizon Wireless for US$240m.
Under terms of the deal, AT&T will buy licenses, network assets and 1.5m. subscribers in 79 service areas, mostly rural areas in 18 states.

Posted by Judith — 4:05 AM

Friday, May 8, 2009

Carphone to purchase Tiscali UK.

Source: BBC.

Carphone Warehouse is to buy the UK assets of Italian internet service provider Tiscali for GBP236m.
The deal, which is expected to be completed by the end of June, will create the UK’s largest home broadband provider with 4.25m subscribers.

Posted by Judith — 4:17 AM

Portugal Telecom appoints bank to sell Meditel stake.

Source: TeleGeography.

Portugal Telecom has selected Morgan Stanley to sell its 32% stake in Moroccan mobile operator Meditel. The stake is reportedly worth between US$400m. and US$530m. Spain’s Telefonica, which owns a 32% stake in Meditel, has first right of refusal on the shares.

Posted by Judith — 3:40 AM

Thursday, May 7, 2009

BCE buying rest of Virgin Mobile Canada.

Source: The Globe and Mail.

BCE has announced that it is buying the 50% stake in Virgin Mobile Canada that it does not already own for $142m. as it prepares for an onslaught of discount competitors in the coming year.
The nation’s largest communications company also said it has signed an agreement with rival Telus to distribute Bell’s satellite television in Alberta and British Columbia under the Telus brand. The move attempts to dislodge Shaw Communication’s dominance in the region.

Posted by Judith — 5:11 AM

NZ Cellcos settle dispute out of court.

Source: TeleGeography.

Vodafone New Zealand has agreed to drop an injunction that could have blocked the launch of Telecom New Zealand’s new 3G ‘XT’ network. The company withdrew its complaint after Telecom NZ agreed to tackle technical issues caused by the new service by installing filters to Vodafone’s network. A similar agreement has also been reached with rival cellco NZ Communications.

Posted by Judith — 4:27 AM

Liberty sells Slovenian cableco.

Source: TeleGeography.

US-owned cable group Liberty Global Inc has agreed to sell its Slovenian subsidiary UPC Telemach to private equity fund Mid Europa Partners for an undisclosed fee.

Posted by Judith — 3:09 AM

Wednesday, May 6, 2009

Nokia Siemens, EMC partner to improve IP network quality.

Source: Telecompaper.

Nokia Siemens Networks and EMC have joined forces in a technology and reseller alliance that will bring advanced IP management to service providers worldwide. Core to the deal, the companies are working together on a joint system to improve the management of IP networks.

Posted by Judith — 3:47 AM

Tuesday, May 5, 2009

Emulex rejects Broadcom’s US$764m. acquisition offer.

Source: InformationWeek.

Emulex has rejected Broadcom’s US$764m. unsolicited acquisition offer. Noting that its board of directors unanimously turned down the offer, Emulex said the Broadcom offer “significantly undervalues Emulex” and doesn’t take into consideration the fact that Emulex has recently beat Broadcom and other competitors in winning tier-one OEM product contracts.

Posted by Judith — 4:58 AM

IBM buys data analytics software maker Exeros.

Source: Reuters.

IBM, the world’s second-largest software maker, has announced that it has acquired Exeros, a privately held maker of computer programs that help companies analyze data across corporate databases.

Posted by Judith — 4:21 AM

Nortel teams with Ingram Micro for unified communications in Australia.

Source: Converge.

Ingram Micro has agreed to distribute Nortel’s unified communications (UC) solutions to its network of IT resellers in Australia. This distribution agreement will see Ingram Micro playing a significant role in distributing Nortel’s recently announced Software Communication System.

Posted by Judith — 4:03 AM

Monday, May 4, 2009

EU calls for Icann reform.

Source: Telecompaper.

The EU has called for a reform of the main internet governance body, the International Corporation for Assigned Names and Numbers. Icann is a private, non-profit organisation run under an agreement with the US government. The current operating agreement expires at the end of September, and the EU wants to see a new multilateral forum and independent judicial body set up to manage and support the internet agency.

Posted by Judith — 8:03 AM

HP and RIM form alliance on BlackBerry.

Source: Reuters.

Hewlett-Packard and BlackBerry maker Research In Motionhave announced that they have formed an alliance to provide services for the BlackBerry.
Among the services are HP CloudPrint for BlackBerry smartphones, which allows users to print e-mails and documents at the nearest printer using the Internet.

Posted by Judith — 7:55 AM

SingTel provides telecom, managed network services to ANZ.

Source: Telecompaper.

Singapore Telecommunications has signed a five-year contract with financial institution ANZ to provide telecommunications and managed network services. As part of the AU$500m. contract, SingTel and its wholly owned subsidiary Optus Networks will provide global managed network services to ANZ in Australia and 30 countries across Asia and the Pacific, including ANZ’s technology and operations centre in Bangalore.

Posted by Judith — 7:20 AM

Saturday, May 2, 2009

BT slows down 21CN, scraps converged service.

Source: Light Reading.

BT says it has slowed down its GBP10bn. (US$14.9bn.) 21CN process and has withdrawn an initial converged service because it wasn’t likely to be profitable. But the carrier denies it has abandoned its next-generation voice platform migration plans.

Posted by Judith — 4:17 AM

Global mobile phone shipments drop 15.9% to 244.8 mln in Q1.

Source: Telecompaper.

The worldwide mobile phone shipments dropped by 15.8% year-on-year to 244.8m. in the first quarter of this year, as expected.
At the same time smartphone shipments grew 4% year-on-year, driven by growth in Western Europe, North America, and Asia/Pacific (excluding Japan).

Posted by Judith — 3:00 AM

Friday, May 1, 2009

China Mobile’s Far EasTone plan may be blocked.

Source: TeleGeography.

China Mobile’s plan to acquire a 12% stake in Taiwanese operator Far EasTone may be dashed after Taiwan’s regulator stated that the cellco belongs to a category of companies in which mainland Chinese ownership is disallowed.

Posted by Judith — 4:09 AM

Bharti and Alcatel-Lucent ink US$500m. fixed line outsource deal.

Source: TeleGeography.

Indian telco Bharti Airtel and French-US hardware vendor Alcatel-Lucent have inked a five-year deal worth US$500m. that will see Bharti outsource its fixed line network to Alca-Lu. The two companies have formed a joint venture to manage Bharti’s broadband and fixed line services in which Bharti will hold a 26% stake.

Posted by Judith — 3:49 AM

VodafoneNZ seeks legal action against NZ Telecom over new 3G network.

Source: TeleGeography.

Vodafone New Zealand has confirmed that it is launching legal proceedings in the hope of blocking Telecom New Zealand’s launch of its new 3G ‘XT’ network, currently planned for 13 May. Vodafone claims that the new 850MHz W-CDMA network is causing interference for its 900MHz customers.

Posted by Judith — 3:16 AM

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